F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N
Summer 2017
10 Scams Targeting Bank Customers
The basics on how to protect your personal information and your money
ALSO INSIDE
How to Negotiate Your
Best Deal on a Mortgage
FDIC Efforts Promote
Access to Safe,
Affordable Financial Services
More Answers to Questions
About Deposit Insurance
Summer 2017
10 Scams Targeting Bank Customers
The basics on how to protect your personal information and your money
ALSO INSIDE
How to Negotiate Your
Best Deal on a Mortgage
FDIC Efforts Promote
Access to Safe,
Affordable Financial Services
More Answers to Questions
About Deposit Insurance
2Summer 2017FDIC Consumer News
The FDIC often hears from bank
customers who believe they may
be the victims of financial fraud or
theft, and our staff members provide
information on where and how to report
suspicious activity. To help further,
FDIC Consumer News includes crime
prevention tips in practically every issue.
As part of that coverage, we feature here
a list of 10 scams that you should be
aware of, plus key defenses to remember.
1. Government “imposter” frauds:
These schemes often start with a
phone call, a letter, an email, a text
message or a fax supposedly from
a government agency, requiring an
upfront payment or personal financial
information, such as Social Security
or bank account numbers.
“They might tell you that you owe taxes
or fines or that you have an unpaid
debt. They might even threaten you
with a lawsuit or arrest if you don’t
pay,” said Michael Benardo, manager of
the FDIC’s Cyber Fraud and Financial
Crimes Section. “Remember that if
you provide personal information it
can be used to commit fraud or be
sold to identity thieves. Also, federal
government agencies won’t ask you to
send money for prizes or unpaid loans,
and they won’t ask you to wire money
to pay for anything.”
2. Debt collection scams: Be on the
lookout for fraudsters posing as debt
collectors or law enforcement officials
attempting to collect a debt that you
don’t really owe. Red flags include
a caller who won’t provide written
proof of the debt you supposedly owe
or who threatens you with arrest or
violence for not paying.
3. Fraudulent job offers: Criminals
pose online or in classified
advertisements as employers
or recruiters offering enticing
opportunities, such as working from
home. But if you’re required to pay
money in advance to “help secure the
job” or you must provide a great deal
of personal financial information for
a “background check,” those are red
flags of a potential fraud.
10 Scams Targeting Bank Customers
The basics on how to protect your personal information and your money
Another variation on this scam
involves fake offers of part-time
jobs as “mystery shoppers,” who are
people paid to visit retail locations
and then submit confidential reports
about the experience. In an example
of the fraudulent version, your job
might be to receive a $500 check, go
“undercover” to your bank, deposit
the check into your account there,
and then report back about the
service provided. But you also would
be instructed to immediately wire
your new “employer” $500 out of
your bank account to cover the check
you just deposited. Days later, the
bank will inform you that the check
you deposited is counterfeit and
you just lost $500 to thieves. One
warning sign of this type of scam is
that the potential employer requires
you to have a bank account.
4. “Phishing” emails: Scam artists
send emails pretending to be from
banks, popular merchants or other
known entities, and they ask for
personal information such as bank
account numbers, Social Security
numbers, dates of birth and other
valuable details. The emails usually
look legitimate because they
include graphics copied from
authentic websites and messages
that appear valid.
“We have also seen emails with links
to fake websites that are exact copies
of real websites for FDIC-insured
banks, except the web addresses are
slightly different than the real ones,”
said Doreen Eberley, director of the
FDIC’s Division of Risk Management
Supervision, which is in charge of the
agency’s policies and programs related
to financial crimes. “These sites are
used to trick people into giving up
valuable personal information that
can be used to commit identity theft.”
5. Mortgage foreclosure rescue
scams: Today, many homeowners
who are struggling financially and risk
losing their homes may be vulnerable
to false promises to refinance a
mortgage under better terms or rates.
But borrowers should always be on the
lookout for scammers who falsely claim
to be lenders, loan servicers, financial
counselors, mortgage consultants, loan
brokers or representatives of government
agencies who can help avoid a mortgage
foreclosure and offer a great deal at the
same time. These criminals will present
homeowners with what sounds like the
life-saving offer they need. Instead, the
homeowner is required to pay significant
upfront fees or, even worse, tricked into
signing documents that, in the fine print,
transfer the ownership of the property to
the criminal involved. Common warning
signs of fraudulent mortgage assistance
offers include a “guarantee” that
foreclosure will be avoided and pressure
to act fast.
The FDIC often hears from bank
customers who believe they may
be the victims of financial fraud or
theft, and our staff members provide
information on where and how to report
suspicious activity. To help further,
FDIC Consumer News includes crime
prevention tips in practically every issue.
As part of that coverage, we feature here
a list of 10 scams that you should be
aware of, plus key defenses to remember.
1. Government “imposter” frauds:
These schemes often start with a
phone call, a letter, an email, a text
message or a fax supposedly from
a government agency, requiring an
upfront payment or personal financial
information, such as Social Security
or bank account numbers.
“They might tell you that you owe taxes
or fines or that you have an unpaid
debt. They might even threaten you
with a lawsuit or arrest if you don’t
pay,” said Michael Benardo, manager of
the FDIC’s Cyber Fraud and Financial
Crimes Section. “Remember that if
you provide personal information it
can be used to commit fraud or be
sold to identity thieves. Also, federal
government agencies won’t ask you to
send money for prizes or unpaid loans,
and they won’t ask you to wire money
to pay for anything.”
2. Debt collection scams: Be on the
lookout for fraudsters posing as debt
collectors or law enforcement officials
attempting to collect a debt that you
don’t really owe. Red flags include
a caller who won’t provide written
proof of the debt you supposedly owe
or who threatens you with arrest or
violence for not paying.
3. Fraudulent job offers: Criminals
pose online or in classified
advertisements as employers
or recruiters offering enticing
opportunities, such as working from
home. But if you’re required to pay
money in advance to “help secure the
job” or you must provide a great deal
of personal financial information for
a “background check,” those are red
flags of a potential fraud.
10 Scams Targeting Bank Customers
The basics on how to protect your personal information and your money
Another variation on this scam
involves fake offers of part-time
jobs as “mystery shoppers,” who are
people paid to visit retail locations
and then submit confidential reports
about the experience. In an example
of the fraudulent version, your job
might be to receive a $500 check, go
“undercover” to your bank, deposit
the check into your account there,
and then report back about the
service provided. But you also would
be instructed to immediately wire
your new “employer” $500 out of
your bank account to cover the check
you just deposited. Days later, the
bank will inform you that the check
you deposited is counterfeit and
you just lost $500 to thieves. One
warning sign of this type of scam is
that the potential employer requires
you to have a bank account.
4. “Phishing” emails: Scam artists
send emails pretending to be from
banks, popular merchants or other
known entities, and they ask for
personal information such as bank
account numbers, Social Security
numbers, dates of birth and other
valuable details. The emails usually
look legitimate because they
include graphics copied from
authentic websites and messages
that appear valid.
“We have also seen emails with links
to fake websites that are exact copies
of real websites for FDIC-insured
banks, except the web addresses are
slightly different than the real ones,”
said Doreen Eberley, director of the
FDIC’s Division of Risk Management
Supervision, which is in charge of the
agency’s policies and programs related
to financial crimes. “These sites are
used to trick people into giving up
valuable personal information that
can be used to commit identity theft.”
5. Mortgage foreclosure rescue
scams: Today, many homeowners
who are struggling financially and risk
losing their homes may be vulnerable
to false promises to refinance a
mortgage under better terms or rates.
But borrowers should always be on the
lookout for scammers who falsely claim
to be lenders, loan servicers, financial
counselors, mortgage consultants, loan
brokers or representatives of government
agencies who can help avoid a mortgage
foreclosure and offer a great deal at the
same time. These criminals will present
homeowners with what sounds like the
life-saving offer they need. Instead, the
homeowner is required to pay significant
upfront fees or, even worse, tricked into
signing documents that, in the fine print,
transfer the ownership of the property to
the criminal involved. Common warning
signs of fraudulent mortgage assistance
offers include a “guarantee” that
foreclosure will be avoided and pressure
to act fast.